Hengtong Shares Plans RMB 3.6 Billion Private Placement for Copper Foil Project in Sichuan

Hengtong Shares announced on the evening of August 13 that it plans to raise no more than RMB 3.6 billion through a non-public share issuance, with proceeds earmarked for the green energy and electronic circuit high-end copper foil industrial park project and the replenishment of working capital.

The industrial park project carries a total investment of RMB 3.302 billion, of which RMB 2.7 billion will come from the proposed proceeds. The project, to be implemented by subsidiary Hengtong Copper Foil at the Deyang Economic and Technological Development Zone in Sichuan Province, will add annual production capacity of 40,000 tonnes of lithium battery copper foil and 10,000 tonnes of electronic circuit copper foil upon completion.

The upgraded lithium battery and electronic copper foil output will cater to applications in new energy vehicles, energy storage, 5G/AI computing power and high-end PCB segments. While conventional copper foil capacity in China is relatively ample, structural gaps persist in ultra-thin lithium battery copper foil and high-end electronic copper foil, with such premium capacity particularly scarce in western regions. The project aims to close this gap in Sichuan and the broader western region and advance the regional copper foil industry upgrade.

Hengtong Copper Foil's product quality and technology rank among the leading levels domestically. In recent years, accelerated growth in new energy vehicles, energy storage and 5G construction has driven up demand for its core products, pushing existing production lines to high utilisation. Capacity constraints have in turn limited the company's scaled expansion. Upon implementation, the project will effectively expand capacity for high-performance lithium battery copper foil and high-end electronic copper foil.

The company also plans to use RMB 900 million of the proceeds to supplement working capital.